Gold analysis 22.01.2020

Gold futures fell during the Asian session to witness their rebound from above for them since March 22, 2013 for the seventh session in eleven sessions amid positive stability of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected today Wednesday by the largest US economy World economy in the shadows of the World Economic Forum Davos in Switzerland.

At exactly 04:16 AM GMT, gold price futures for February delivery fell 0.49% to trade at $ 1,551.30 per ounce compared to the opening at $ 1,558.90 per ounce, knowing that the contracts started the trading session on an upward price gap after yesterday's trading was concluded At $ 1,557.90 an ounce, with the US dollar index rising 0.04% to 97.66 compared to the opening at 97.62.

Investors are currently looking for the US economy to disclose housing market data with the release of the house price index, which may show an acceleration of growth to 0.3% compared to 0.2% last October, before we witness the release of the existing home sales index, which may indicate an increase 1.5% to 5.43 million homes, compared to a decline of 1.7% at 5.35 million homes last November.

It is noteworthy that US President Donald Trump praised yesterday during the events of the World Economic Forum Davos what his administration reached from trade deals and economic achievements for his country, noting the trade agreements concluded with China, Mexico and Canada, with his statement that the second stage of the trade agreement between Washington and Beijing will begin Soon, tariffs existed during the second-stage talks, adding that there was a good relationship with his Chinese counterpart.

In the same context, US President Trump warned that his administration will impose 25% customs duties on European cars in the absence of a fair trade agreement between Washington and Brussels, with a threat to impose 100% customs duties on French wine, and told him that France will stop imposing duties On the Internet companies at the moment and that he had no intention of meeting with the Ukrainian Prime Minister on the forum.

The remarks of the Republican President came during the Davos activities, which included his criticism of the Federal Reserve for being weakly reducing interest, in conjunction with the Republican majority of the Republican majority began the forty-fifth session of the US President's trial that aims to remove him from office following the accusations leveled against him by the House of Representatives Democratic majority, against the backdrop of his leaked phone call to the Ukrainian Prime Minister.

In another context, we also followed yesterday, US Treasury Secretary Stephen Minnouchen expressed during the Davos events, that the second stage of the trade agreement between his country and China will not include the abolition of customs tariffs in full, and that the first part of the second stage may include the postponement of some tariffs, with a warning to each From Italy and Britain who will face US tariffs if they continue to impose a digital tax on companies such as Google and Facebook.

Otherwise, yesterday we followed the report that touched on North Korea's threat to the United States not to disarm its nuclear weapons in the event of continued US sanctions imposed on them, and we also followed yesterday a member of the Iranian Parliament expressed that his country would be protected from any threats if it possessed nuclear weapons, stating that Tehran must bear in mind the production of long-range missiles capable of carrying nuclear warheads, adding that this guaranteed the right to self-defense.

Technical analysis

The gold price made attempts to break the 1554.10 level yesterday, but closed the daily candle above it, to allow opportunities to resume the bullish trend, noting that the price starts the day with a new negativity to move below the mentioned level.

Therefore, we prefer stopping on a neutral period temporarily until the price confirms its position in relation to the mentioned level, noting that cohesion above it will lead the price to rise again and head towards our positive targets that start at 1575.90, while stability below it represents a negative factor that will pressure the price to return to the path Corrective bearish correction again, heading towards 1536.50 levels and it may extend to 1518.85 before any new attempt to rise.

The expected trading range for today is between 1540.00 support and 1565.00 resistance.

Expected trend for today: neutral.